Investing.com-- Gold prices edged higher to an 11-week high in Asian trading on Wednesday, extending gains for a third consecutive session as safe-haven demand grew amid U.S. tariff fears under President Donald Trump’s administration.

Spot Gold rose 0.2% to $2,749.29 per ounce, its highest level since early November, while Gold Futures expiring in February gained 0.2% to $2,766.57 an ounce by 01:45 ET (06:45 GMT).

The yellow metal was set for a third straight day of gains, as traders remained cautious while trying to gauge Trump’s policies, which are expected to elevate inflation. Gold is seen as a hedge against inflation.

The dollar had fallen sharply on Monday after Trump avoided details on the imposition of U.S. trade tariffs, further supporting gold prices. 

Bullion supported by ‘safe-haven’ demand amid global uncertainity

The precious metal, traditionally viewed as a safe-haven asset, has maintained its price above a one-month peak roughly since last week. This reflects that markets are bracing for global uncertainty as Trump’s policy announcements and tariff declarations are expected to influence market dynamics. 

Trump said on Tuesday he is considering imposing 10% tariffs on Chinese imports from February 1, and also vowed to hit the European Union with tariffs.

The increased tariffs will likely result in reduced trade imbalances and higher inflation, which are both seen as dollar-positive.

A stronger dollar typically drives gold prices lower because it makes the metal costlier for buyers using other currencies.

The US Dollar Index rose 0.2% in Asian trade on Wednesday, after closing largely unchanged a day earlier. It fell more than 1% on Monday as Trump avoided tariff announcements.

Traders are closely monitoring Trump’s moves to assess their impact on gold's trajectory.

Other precious metals were muted on Wednesday. Platinum Futures were unchanged at $968.45 an ounce, while Silver Futures were steady at $31.51 an ounce.

Copper prices drop further on tariff fears

Copper prices fell, continuing their subdued performance after Trump’s inauguration, as a combination of anticipated U.S. tariffs, and prospects of a stronger dollar, weighed on the red metal.

During periods of escalating tariffs and trade tensions, copper prices have historically declined due to reduced demand from China, the world's largest copper consumer.

Benchmark Copper Futures on the London Metal Exchange fell 0.6% to $9,232.50 a ton, while February Copper Futures declined 0.9% to $4.3015 a pound.